Budget deal helps Newman's Own avoid massive tax bill

Posted: Updated:
WESTPORT -

The budget deal means major relief for the iconic Westport-based Newman's Own.

Newman's Own was facing a 200 percent tax hit because of an obscure provision in the tax laws. However, today's budget deal rolls that tax hit back.

The company, which is owned by Paul Newman's foundation, takes all the money it makes from selling salad dressing and pasta sauces and donates it to charity. The IRS was about to hit the company with a massive tax bill.

"The issue we were facing was an unintended consequence of a tax law that goes back to 1969 that prevents private foundations from owning for-profit entities, which really became a problem upon Paul Newman's passing," says Jeff Brown, VP and Chief Administrative Officer of Newman's Own.

The tax law was meant to keep rich families from creating foundations to avoid paying taxes. The current budget deal now exempts groups like Newman's Own that give 100 percent of its profit to charity.

  • Connecticut Top StoriesTop StoriesMore>>

  • Memorial Day gas prices highest in 4 years

    Memorial Day gas prices highest in 4 years

    Friday, May 25 2018 5:53 PM EDT2018-05-25 21:53:51 GMT
    Memorial Day weekend gas prices are the highest they've been in four years.Memorial Day weekend gas prices are the highest they've been in four years.

    Memorial Day weekend gas prices are the highest they've been since 2014.

    Memorial Day weekend gas prices are the highest they've been since 2014.

  • Check out the Memorial Day weekend forecast

    Check out the Memorial Day weekend forecast

    News 12 Connecticut Weather ForecastNews 12 Connecticut Weather Forecast

    Here's the latest News 12 Connecticut weather update.

    Here's the latest News 12 Connecticut weather update.

  • Family of teen who got trapped under truck 'optimistic' for recovery

    Family of teen who got trapped under truck 'optimistic' for recovery

    Friday, May 25 2018 5:55 PM EDT2018-05-25 21:55:01 GMT
    The family of a Bridgeport teen who got trapped under a pickup truck drive while driving a scooter says they're "optimistic" that he'll make a full recovery.The family of a Bridgeport teen who got trapped under a pickup truck drive while driving a scooter says they're "optimistic" that he'll make a full recovery.

    The family of a Bridgeport teen who got trapped under a pickup truck drive while driving a scooter says they're "optimistic" that he'll make a full recovery.

    The family of a Bridgeport teen who got trapped under a pickup truck drive while driving a scooter says they're "optimistic" that he'll make a full recovery.

  • Connecticut SlideshowsSlideshowsMore>>

  • PHOTOS: Fleet Week 2018

    PHOTOS: Fleet Week 2018

    Wednesday, May 23 2018 8:53 PM EDT2018-05-24 00:53:14 GMT
    Fleet Week 2018Fleet Week 2018
    Fleet Week 2018Fleet Week 2018

    Photos of the 2018 Fleet Week ships coming up the Hudson River to Manhattan. There are 14 ships for the public to visit and tour. The celebration lasts a week. It has been held nearly every year since 1984.

    Photos of the 2018 Fleet Week ships coming up the Hudson River to Manhattan. There are 14 ships for the public to visit and tour. The celebration lasts a week. It has been held nearly every year since 1984.

  • Memorial Day 2018 Photos

    Memorial Day 2018 Photos

    Whether you are honoring loved ones, attending a parade or spending time with family, News 12 wants to see your Memorial Day photos. Post them on Instagram or Twitter with #N12MemorialDay.

    Whether you are honoring loved ones, attending a parade or spending time with family, News 12 wants to see your Memorial Day photos. Post them on Instagram or Twitter with #N12MemorialDay.

  • 2018 Stamford Downtown Summer Concert Lineup

    2018 Stamford Downtown Summer Concert Lineup

    Tuesday, May 1 2018 11:42 AM EDT2018-05-01 15:42:34 GMT
    2018 Stamford Downtown Summer Concert Lineup2018 Stamford Downtown Summer Concert Lineup

    The 2018 Stamford downtown summer concert lineup includes live music from national and regional headliners at Columbus Park.

    The 2018 Stamford downtown summer concert lineup includes live music from national and regional headliners at Columbus Park.

sorry to interrupt
your first 20 are free
Access to News 12 is free for Optimum, Comcast®, Spectrum Networks® and Service ElectricSM customers.
Please enjoy 20 complimentary views of articles, photos, and videos during the next 30 days.
you have reached your 20 view limit
Access to News 12 is free for Optimum, Comcast®, Spectrum Networks® and Service ElectricSM customers.
Please login or create an account to continue enjoying News12.
Our sign-up page is undergoing maintenance and is not currently available. However, you will be given direct access to news12.com while we complete our upgrade.
When we are back up and running you will be prompted at that time to complete your sign in. Until then, enjoy the local news, weather, traffic and more that's "as local as local news gets."